Proposed Voluntary Delisting Of Hengxin Technology Ltd. From The ...

Registered Shares. Even if such Singapore Shareholders were able to sell their
Singapore Registered Shares, they may receive a lower price as compared with the
price at which the Shares are traded on the HKSE.
Cost not justifiable
The additional and recurring costs of maintaining listing in two (as opposed to one)
stock exchanges (including the compliance costs) are not justifiable in view of the
above and in the long-term. The resources saved can be better channelled for use in
the business of the Company and in turn benefit Shareholders as a whole.
9.2 Rationale for the Exit Offer
Under Rule 1309(1) of the SGX-ST Listing Manual, an issuer seeking to delist from
the Official List of the SGX-ST should procure that a reasonable exit alternative,
which should normally be in cash, should be offered to Shareholders and holders of
any other classes of listed securities to be delisted. The Offeror believes that the
Delisting is in the best interests of the Company and is providing the Exit Offer to
support the Delisting in order to comply with Rule 1309(1) of the SGX-ST Listing
Manual.
9.3 Offeror’s intentions for the Company
Following completion of the Exit Offer, the Offeror intends to maintain the
Company’s listing on the HKSE, continue the existing principal activities of the
Company and its subsidiaries (the ‘‘Group’’) and has no plans for any changes to the
existing businesses or employees of the Group or to redeploy the fixed assets of the
Group.
The Board has noted the intentions of the Offeror in respect of the Company and its
employees as stated above. It is willing to render reasonable co-operation with the
Offeror for the smooth running of the business of the Group.
9.4 Maintaining the listing status on the HKSE of the Company
The Offeror intends to maintain the listing of the Shares on the HKSE after the close
of the Exit Offer.
In the event that after completion of the Exit Offer, the public float of the Company
falls below 25%, the Directors and the directors of the Offeror will undertake to the
HKSE that they will take appropriate steps to restore the minimum public float as
required under the HKSE Listing Rules as soon as possible following the close of the
Exit Offer to ensure that sufficient public float exists for the Shares.
According to the HKSE Listing Rules, if, upon closing of the Exit Offer, less than the
minimum prescribed percentage applicable to the Company, being 25%, of the issued
Shares are held by the public or if the HKSE believes that (i) a false market exists or
may exist in the trading of the Shares; or (ii) there are insufficient Shares in public
hands to maintain an orderly market, then it will consider exercising its discretion to
suspend trading in the Shares.
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